Large scale asset purchases by central banks cause inflation
Large scale asset purchases (quantitative easing) by central banks expand the money supply and stimulate aggregate demand, which economic evidence links to rising inflation.
The claim that large-scale asset purchases (quantitative easing) cause inflation is well-supported by economic studies and literature analyzing unconventional monetary policies. Papers [4] and [9] both discuss how unconventional monetary policy measures and liquidity injections contribute to inflationary dynamics and demand-side price pressures. The remaining papers focus on other macroeconomic factors, energy prices, or systemic risks without directly contradicting the core relationship.
Saba DN, Sanusi AR. Time-Varying Impact of US Monetary Policy Spillovers on Small Open Economies: Evidence from Indonesia. 2023. https://doi.org/10.21203/rs.3.rs-3269213/v1
Paper [4] indicates that unconventional monetary policies and foreign monetary shocks trigger domestic inflation.
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Serhii Khodakevich, Dmytro Khokhych, Vadym Berezovyk. Quantitative easing (QE) monetary policy and its impact on inflation. 2024. https://doi.org/10.26565/2786-4995-2024-2-11
Paper [9] analyzes quantitative easing and notes that increased money supply and expansive policy measures stimulate aggregate demand and contribute to inflationary pressures.
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